85k FSCS protection related question

spfc

Daliah said:

Your answer is on the FSCS website, in the FAQs

Maybe I'm misreading it but it doesn't sound like the same as you having a mortgage and savings where both are over the 85k and having the debt paid with the difference.

Linton

spfc said:

Daliah said:

Your answer is on the FSCS website, in the FAQs

Maybe I'm misreading it but it doesn't sound like the same as you having a mortgage and savings where both are over the 85k and having the debt paid with the difference.

Your savings are not used to pay the mortgage debt.  See:
https://www.thisismoney.co.uk/money/mortgageshome/article-7908539/I-mortgage-savings-bank-goes-bust.html

Stenwold

Linton said:

spfc said:

Daliah said:

Your answer is on the FSCS website, in the FAQs

Maybe I'm misreading it but it doesn't sound like the same as you having a mortgage and savings where both are over the 85k and having the debt paid with the difference.

Your savings are not used to pay the mortgage debt.  See:
https://www.thisismoney.co.uk/money/mortgageshome/article-7908539/I-mortgage-savings-bank-goes-bust.html

This article confirms that a consumers 85k is protected regardless of whether they have a mortgage with the same firm, which is the answer to a question that no-one asked. The last sentence of the screenshot from the FSCS website is important for this conversation.

The fact it seems to be a grey area is indicative of the lack of useful information around regarding the issue.

Daliah

spfc said:

Daliah said:

Your answer is on the FSCS website, in the FAQs

Maybe I'm misreading it but it doesn't sound like the same as you having a mortgage and savings where both are over the 85k and having the debt paid with the difference.

If it isn't what you are after, have a look at the FAQ. They also cover mortgages with the same provider. Better to take your info from the FSCS website rather than form an internet forum or a newspaper.

Thrugelmir

spfc said:

Thrugelmir said:

spfc said:

Hmmm.. a couple of different responses here, thanks all

Property investor and not the best time for buyers with house prices through the roof so money will need to sit somewhere between transactions. Guess it's safer to take the safe approach and spread the savings with different banks even if for a short period of time then.

The main UK banks aren't at risk as they were in mid 2008. The world has moved on. Balance sheets are now greatly deleveraged. Annual stress testing by the BOE. Basle 3 regulation implementatation by 2023. 

That makes sense, just doesn't mean the FSCS protection rules are overlooked and ways to mitigate the risks implemented.

Spend too much time on Facebook and you'll end believing anything. Such are the conspiracy theories that abound these days. Mind you a goldfish in a bowl has a longer attention span than the average Facebook user.